Submitting For IRS IRS is the name of the Federal agency that is in charge of the Federal Income Tax system. (Yawn…) If this is where your understanding of the Federal Tax System stops, you are not alone. The art of learning how to collect a simple Federal Tax Refund becomes more complicated every year. Our Internal Revenue Service instruction books are completely outrageous, and simply – the Internal Revenue Service know it.
The Internal Revenue Service is made up of individuals who are trying to use those Federal Tax Refund instructions right along with us. Once this understanding is internalized, filing a Personal Tax Return for the purpose of getting your refund becomes a whole lot less troublesome.
What is a Federal Tax Refund?
Jobs that receive a paycheck are pre-taxed by the Internal Revenue Service. An amount of money is taken out of each earnings and given to the IRS for the purpose of pre-paying your yearly Income Tax dues. The amount of money being given to the Internal Revenue Service is based upon a calculated guess that varies according to individual scenarios. Normally, the guess is wrong and money must either be paid or refunded to settle the tax bill.
The Federal government allows a variety of items that can reduce the amount of taxes that is owed to the Internal Revenue Service. These items are called ‘deductions’. Those complicated Federal Tax Refund instructions are all about the deductions that people are allowed to ask the Internal Revenue Service to remove from the owing tax bill. While there is an Form 1040 ez that is easier to fill out for the refund, the longer 1040 tax return often results in a bigger refund.
One of the very first items that taxpayers should see if they qualify for is called an Earned Income Credit or EIC. This credit is worth up to 824.00 depending upon individual cases and how many kids are living in the home. As many as 25% of all taxpayers who are allowed to ask for this tax refund fail to do so. People without children may also ask for this tax refund if they qualify under the requirements.
The Federal Tax Refund is made by mail after the Internal Revenue Service receives the paperwork. Some people believe that it is wise to hold the monies received on the refund for a period of 60 days before spending it to see if the Internal Revenue Service will be sending a second note asking for an explanation on part of your paperwork. In recent years, the Internal Revenue Service sends out tax refunds first in some cases and then decides to ask questions later that might result in some of the Federal Tax Refund money needing to be returned.